Credit card debt often comes with a high interest rate (17-20% or higher), so you could free up a lot of extra cash by just paying down this debt and not having to pay interest in future months.
So that’s why I recommend paying off all high-interest debt as one of the first steps when you have enough income or extra cash to do so!
For example, if you’re wondering what to do with an extra $1,000 or $500 a month, or just a single amount of $1,000 in the bank, investing in yourself is one of the best things to do with your money… and one of the most effective ways to see a return on that investment.
Now that you know what to do with spare money and income, let’s look at what to do with that extra money in the bank or extra income from work.